(1999). Margin requirements and futures activity: Evidence from the soybean and corn markets. Journal of Futures Markets, 19, 433-455.Adrangi, B. and A. Chatrath, 1999, "Margin Requirements and Futures Activity: Evidence from the Soybean and Corn Markets," Journal of Futures Markets, 19, ...
In futures, you put down a good faith deposit called the initial margin requirement. The cash for the initial margin requirement is automatically set aside in your account and subtracted from your buying power once an order is entered. Margin requirements Whether you go long or short, initial...
Goldberg, L. G. and Fishe, R. P.H. (1986), SETTING MARGIN REQUIREMENTS IN FUTURES MARKETS. Financial Review, 21: 33. doi: 10.1111/j.1540-6288.1986.tb00697.x Author Information 1 University of Miami 2 University of Miami Publication History Issue published online: 9 MAR 2005 Article firs...
Download PDFs Help Help doi:10.1016/S1062-9769(00)00068-5This paper investigates the impact of margin requirements on the trading activity in the gold and silver futures markets. We extend prior research in at least two ways. First, we examine the role of time to contract-expiration in the...
Futures Margin Rates Due to market volatility, margin rates are subject to change at any time and posted rates may not reflect real-time margin requirements. Information furnished is taken from sources TradeStation believes are accurate. TradeStation is not responsible for any errors or omissions. ...
Initial margin requirements in futures vary depending on the futures contract, but are usually just a small percentage (3% to 12%) of the underlying (notional) value of the asset. Through margin, a trader can control a large position with a relatively small amount of money down. By contrast...
With futures, traders must put down a good-faith, initial margin requirement, also known as a “performance bond,” which ensures each party (the buyer and the seller) can meet their obligations as spelled out in the futures contract. Initial margin requirements vary depending on the commodity...
Because each futures product comes with its own set of risk dynamics, and those dynamics can change with market conditions, each has its own margin requirement. Margin requirements are set by the exchange but can change at any time. Initial margin and other contracts specs can be viewed on th...
The difference between the entry and exit prices of the contract determines profits. As with any speculative trade, there are risks the market could move against the position. The trading account must meet margin requirements and could receive a margin call to cover any risk of further losses. ...
If these margin requirements are not met, then the position may be closed at a loss. Therefore, while leverage can magnify gains, it can also magnify losses, sometimes exceeding the initial investment. The Bottom Line Futures trading allows investors to lock in prices for commodities, ...